Option 1 was chosen by all the 28 States and 3 Union Territories with legislature to meet the revenue shortfall arising out of the GST implementation. Jharkhand, the only remaining State, has now officially informed its acceptance of Option-1. A decision to go with option 1 was made by all the 3 Union Territories with Legislative Assembly who are members of the GST council. To borrow the amount of shortfall arising out of GST implementation Union Government has set up a special borrowing window for the States & Union Territories.
Since October 23, 2020 the special window is operating and the Government of India has already borrowed an amount of Rs.30,000 crore on behalf of the States in five installments and passed it on to the States and Union Territories, who chose Option-1. Now, Jharkhand state will also receive funds raised through this window begins its count from the next round of borrowing. On December 7, 2020 the next installment of Rs.6,000 crore will be released to the States/UTs.
Jharkhand who choose option 1, was granted an additional borrowing permission of Rs.1,765 crore to the State Government of Jharkhand (0.50 % of Jharkhand’s GSDP). Through the additional borrowing of 0.50 percent of GSDP allowed states/Union Territories will get Rs 106830 crores with Maharashtra at the highest of Rs 15394 crore and the amount of fund raised through special window passed on to the States/ UTs stands at Rs 30000 crore.
GST Collection over Rs 1-La-Cr For The Second consecutive Month
